Hong Kong to give £1,000 to every resident

Subsidy one of many emergency measures unveiled to help boost spending and ease financial burden amid growing recession

Hong Kong has pledged to hand out cash packages worth £985 (HK$10,000) to every resident over the age of 18 in a bid to alleviate recent economic hardships.

The subsidy is one of many emergency measures unveiled in Wednesday’s budget as the territory’s economy continues to stagnate due to violent political unrest and the impact of coronavirus.

About seven million people will benefit from the cash handouts.

“Hong Kong’s economy is facing enormous challenges this year,” financial secretary Paul Chan said.

“After careful consideration, I have decided to disburse HK$10,000 to Hong Kong permanent residents aged 18 or above, with a view to encouraging and boosting local consumption on the one hand, and relieving people’s financial burden on the other.”

As part of a HK$120bn (£1.1bn) relief package, authorities will also double the monthly allowance for low-income families, lower public housing rent, cut corporate taxes, and boost funding for the trade development council, the arts, the tourism board and for public hospitals.

The budget deficit is projected to rise to nearly £13.8bn by 2021 – a record for the territory.

“I believe that only with such a budget can we help our community and local enterprises ride out their difficulties,” Mr Chan added.

Hong Kong has already launched a relief fund, which includes cash handouts, for businesses and sectors impacted by Covid-19.

Public life in the region has been severely impacted by the outbreak of the virus, which, as of 25 February, has infected 81 people and killed two.

Restaurants and public facilities, such as libraries, museums and sports centres, have been closed until further notice, while tourism between China and Hong Kong has also suffered due to travel restrictions.

The arrival of Covid-19 follows months of violent clashes between pro-democracy activists and the police, with the city repeatedly brought to a halt amid the unrest.

Public discontent over growing influence from Beijing has fuelled the protests, which were sparked by a now withdrawn proposal to allow Hong Kong citizens to be extradited to stand trial in mainland Chinese courts.

Hong Kong’s economy is highly dependent on trade and tourism with China, where the coronavirus first surfaced earlier this year.

The former British colony is a semi-autonomous region of China that enjoys unique civic liberties and has its own economic and legal systems.

Many young Hong Kong residents also have expressed frustration with a lack of job opportunities in the region, a financial centre with an economy dominated by wealthy property tycoons.